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Action Products International, Inc.: Action Products International Management Comments on Recent Share Price Volatility

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  Published in House and Home on Friday, December 26th 2008 at 7:05 GMT, Last Modified on 2008-12-26 07:06:12 by Market Wire

ORLANDO, FL--(Marketwire - December 26, 2008) - Action Products Int'l, Inc. (NASDAQ: [ APII ]), a family consumer products company, comprised of subsidiaries, Action Toys, Inc., Curiosity Kits, Inc., and Action Healthcare Products, Inc., reported that management does not know of any reason, from the company's operations or ongoing business activity, relating to a recent decline in the company's stock price and higher-than-usual volume.

The company has made no changes to previous projections, nor has management received notice of any material new reports by analysts, that management believes would cause such trading activity.

Recently, large institutional holder FIMG made public that it is closing its Utopia Funds, a group of mutual funds, due to shareholder redemptions and its change of strategy. Utopia Funds reported approximately a 20% stake in APII. According to a public letter to Utopia shareholders, "The ultimate reason for the closing of the Utopia Funds involves fees and expenses."

Action's new CEO, Neil Swartz, states, "It is management's opinion nothing has occurred during the past week in the company's day-to-day operations or long-term prospects that would account for the sudden downturn in the price of APII shares. Our most recent major developments, as announced previously, are continuing to progress in reducing expenses, the introduction of new products, and awards and accolades suggesting higher sales levels in 2009. We have continued to execute our business plan as described in our public reports and filings."

About Action Products International, Inc.

Action Products International, Inc. ("APII") is a global manufacturer and distributor of brand-focused consumer products with award winning brands in the educational toys and crafts product segment. Headquartered in Orlando, Florida, APII's product line includes action figures, play-sets, activity kits and premium wooden toys that emphasize educational fun within the themes of arts and crafts, nature and science. Action Toys Inc products are distributed to and sold by more than two thousand retail stores worldwide. For more information about the Action Toys Inc, please visit our websites at [ www.apii.com ] and [ www.actiontoysinc.com ].

Safe Harbor Forward-Looking Statements

Statements contained in this release that are not strictly historical are "forward-looking statements." Such forward-looking statements are sometimes identified by words such as "intends," "projects," "anticipates," "believes," "expects" and "hopes." The forward-looking statements are made based on information available as of the date hereof, and APII assumes no obligation to update such forward-looking statements. Editors and investors are cautioned that such forward-looking statements involve risks and uncertainties that could cause APII's actual results to differ materially from those in these forward-looking statements. Such risks and uncertainties include but are not limited to demand for APII's products and services, APII's ability to continue to develop markets, general economic conditions, APII's ability to secure additional financing and other factors that may be more fully described in APII's reports to shareholders and periodic filings with the Securities and Exchange Commission.